If you’d like a challenge, buy a fixer-upper with a 203k loan and get enough funds to cover the cost of repairs too. Upgrade your new house to get your dream home.

5. Check If You Qualify First

As you might expect, a first-time buyers loan is usually aimed at first time buyers. That means people who haven’t own a home before at all. But you’re considered a first-time buyer if you haven’t owned a home in three years.

Other restrictions sometimes affect who qualifies for a home loan. Earning too high a salary, or having lots of savings, might disqualify you.

Don’t despair though. Sites like ManufacturedHomeLoans.com let you search multiple lenders at once to find the right loan for you.

Learn How Loans Work to Buy Your First Home

If you were wondering how do home loans work, now you know! Armed with this information, you can research which loans are right for you.

Work on improving your credit score before you apply. Then you’ll know how much you need to save for your dream home.